USD/JPY (current price: 110.18)
The Dollar managed to advance compared to the number one safe haven currency yesterday, as the pair rose above the 110 level for the first time since the last BOJ meeting. USD/JPY still faces strong resistance at 111, with the upper boundary of the current dominant pattern found at 112. The 200-day MA is still well above the current rate, near 117, providing ample room for a sustained move on the upside. Monetary policies are still likely to have the biggest influence on the cross.
Our assessment: The pair broke out of the short-term consolidation pattern yesterday, and it could continue the bounce that already took USD/JPY up by almost 500 pips in two weeks.
